Terrence Williams, Tony Allen and more: NBA players who have been caught for tax evasion
As evidenced by LeBron James’ recent agreement to a two-year, $97.1 million contract extension, NBA players can cash in huge checks. Players also earned quite a bit back in the day. However, some of those who wanted to make the most of it relied on tax evasion. Here is a list of NBA players that were caught for tax evasion.
#3 Randolph Morris
Per HoopsHype, Randolph Morris earned $2.4 million in his NBA career with the New York Knicks and Atlanta Hawks. That amount is worth $3.1 million today after adjusting for inflation. While he had a short career in the NBA, Morris played in the Chinese Basketball Association between 2010 and 2017.
Reports suggested that Randolph Morris failed to disclose revenue totaling up to $13 million and was indicted on wire fraud and tax evasion charges. The wire fraud counts allege that Morris submitted false income information to the Kentucky Department of Revenue for the 2015, 2016 and 2017 tax years when he played for the Beijing Ducks.
A jury in Lexington returned not guilty verdicts on 11 counts after Morris claimed that he repeatedly reached out to the Ducks for tax documents to no avail.
#2 Kermit Washington
Former LA Lakers player Kermit Washington was best known for punching opponent Rudy Tomjanovich. However, he was charged with six years in prison due to an extensive charity fraud scheme. Washington used his name and fame to convince fellow athletes to donate money to a charity he ran. He ended up using the funds for himself.
The Sixth Man Foundation, Washington’s charity, ran a project called "Project Contact Africa." It used an eBay store and PayPal account to facilitate payments. Washington admitted to diverting funds from the charity’s bank account for personal spending, such as rent and credit card payments.
Washington pleaded guilty on November 30th, 2017, to two counts of filing a false tax return and one count of aggravated identity theft. He ended up receiving six years in federal prison.
#1 Eighteen ex-NBA players charged in $4 million health care fraud scheme
In October 2021, 18 former NBA players were charged for illegally pocketing $2.5 million via the league’s health and welfare benefit plan. According to the indictment, the scheme went on from 2017 to 2020, when the accused claimed false medical expenses and dental procedures.
These health care benefits have been implemented to help athletes during and after their playing careers. The NBA responded to these allegations, calling it ‘particularly disheartening,’ given their intention behind providing such support.
Former NBA players indicted today on charges to commit health care fraud and wire fraud … https://t.co/9z34IyB5ND
Shooting guard Terrence Williams, who played in the league between 2009 and 2013, was allegedly the leader of the scam. He had access to fraudulent invoices through a chiropractor and dentist, which he used to bring other players on board. Some well-known names in the eighteen include Glen Davis, Tony Allen, Shannon Brown and Melvin Ely.